Even though ConAgra’s price of $90 a share represents a 25% premium over Ralcorp’s 30-day average closing price, the food giant sees plenty of cost savings and opportunity to boost its top line as it moves to become the largest private label food maker in the U.S.

Those selling points appear to be making the deal appetizing to Wall Street, with ConAgra shares ranking near the top of the leader board among S&P 500
/quotes/zigman/3870025$SPX components.

About The Tell

The Tell is MarketWatch’s fast and engaging look at trends and themes in the day’s markets. Drawing on our reporters, analysts and commentators around the world, as well as selecting the best of the rest online, The Tell is all about the pulse of the markets through news, insight and strategic information to help you make the best investing decisions. Got a tip? Tell us at TheTell@MarketWatch.com